Capital spending by Japanese firms rises 6.1 pct in Jan.-March period

Source: Xinhua| 2019-06-03 18:58:02|Editor: Wu Qin
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TOKYO, June 3 (Xinhua) -- Business spending by Japanese companies increased 6.1 percent in the January-March quarter from a year earlier, the government said in a report on Monday.

According to the Finance Ministry, capital spending by all non-financial sectors rose by 5.7 percent in the previous quarter to 15.68 trillion yen (145 billion U.S. dollars).

The ministry's data revealed a 10th straight quarterly gain on the back of healthy spending by businesses to produce auto components and construction equipment, as well as by firms spending on chemicals to produce cosmetics.

Capital expenditure, excluding spending on software, meanwhile, increased 1.1 percent, the ministry said, on a seasonally adjusted, quarter-on-quarter basis.

Companies posted pretax profits to the tune of 22.24 trillion yen (205 billion U.S. dollars), up 10.3 percent from a year earlier and on the heels of a 7.0 percent slump marked in the previous quarter, the ministry's data also showed.

Sales rose for a 10th successive quarter by 3.0 percent to 372.52 trillion yen (3.43 trillion U.S. dollars), the ministry said.